A sharp decline in oil prices after a statement by Trump’s deputy about Iran.. What is the story?

Oil futures prices fell sharply on Wednesday, as traders bet that the historic losses suffered by the Republican Party in the midterm elections may reduce the possibility of an immediate escalation in the war on Iran.

The pace of selling operations in the oil market accelerated significantly after US Vice President J.D. Vance published a lengthy statement on the “X” platform (formerly Twitter), in which he attributed the election results to the military conflict, and said: “The reason behind our loss is the war, and the president himself stated this last night.”

Brent crude futures fell by about 8%, reaching $95.70 per barrel in the latest trading.

Thus, Brent crude - the global standard - has recorded a decline of 16% since the beginning of this month, and is heading towards ending the month at its lowest levels in two months. West Texas Intermediate crude - the American standard - has also witnessed a similar decline, falling below the level of $90 per barrel.

“Markets have decided that maybe it's time to give peace a chance,” said Tom Kloza, senior energy advisor at Gulf Oil.

Kloza added that gasoline prices - which were a major factor behind the Republican Party's losses on Tuesday - may fall at the local level to less than $4 per gallon by Veterans Day next week, noting that prices in some states may fall below $3 per gallon.

For his part, Bob McNally, president and founder of Rapidan Energy Group, said: “Dealers are betting that the administration will end this war, given that the defeat was greater than everyone expected. But we do not believe that, as we believe that escalation is the most likely possibility.”

McNally, who previously served as energy advisor to former President George W. Bush, warns that the war with Iran may get worse before it gets better, a scenario that could lead to a sharp rebound in energy prices.

Iran has vowed to attack the energy infrastructure in the Middle East in the event of a return to large-scale combat operations.

McNally added: "I do not see a realistic scenario in which Trump simply withdraws; he has already paid the political price, and is now - in one way or another - free from those restrictions."